Southwestern Funding Corp. v. Motors Ins. Corp.

In this action determination is sought by-plaintiff finance company of the liabilities of two insurance companies, each of which had issued a policy covering an automobile owned by one Valencia, with a “loss payable” clause in favor of plaintiff. The car was damaged in a collision in Mexico more than 50 miles from the boundary line of the United States. The trial court concluded that by reason of territorial provisions set forth in the respective contracts neither policy provided coverage to plaintiff, and entered judgment accordingly. We have concluded for reasons hereinafter expounded that the judgment should be reversed with respect to defendant Aetna Casualty and Surety Company, hereinafter called Aetna, but affirmed as to defendant Motors Insurance Corporation.

Aetna Policy

The case was presented to the trial court upon a series of stipulations which amounted to an agreed statement of facts. Therefrom it appears that Aetna issued its subject policy to Valencia as the “Named Insured” to cover a Mercury automobile for the period of one year, commencing March 13, 1959. Thereafter, by an “Endorsement effective 4-23-59,” the policy was amended to provide coverage of a second…